Under the American Rescue Plan Act (ARPA), signed into law in March by President Biden, certain employers may be eligible for tax credits if they voluntarily extend Emergency Paid Sick Leave (EPSL) and Emergency Family Medical Leave (EFMLA) from April 1, 2021, to Sept. 30, 2021.
Small and midsize business owners may claim the wages they paid for EPSL and EFMLA as a credit against their employer contributions for social security and FICA taxes. Businesses can take dollar-for-dollar tax credits equal to wages of up to $5,000.
EPSL and EFMLA
Employees may take paid sick leave through the EPSL or EFMLA for one of the following reasons related to the COVID-19 pandemic:
Help is available
The attorneys at O’Reilly Rancilio are ready to answer your questions regarding COVID-19 and the law. Business owners or municipalities with questions regarding the ARPA, EPSL, EFMLA tax credits should call 586-726-1000 or visit www.orlaw.com.